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Freshpet CEO Says 'Outsized Growth' Expected Despite Lowered Sales Target

Freshpet Inc. (NASDAQ:FRPT) stock rallied on Monday after it reported second-quarter 2025 earnings of 33 cents per share, beating the consensus estimate of 16 cents.

Net sales rose 12.5% year-over-year to $264.7 million but missed the analyst estimate of $268.9 million. Sales growth was driven by a 10.8% increase in volume and a 1.7% improvement in price and mix.

Net income was $16.4 million, reversing a net loss of $1.7 million in the year-ago quarter. Gross profit rose to $108.2 million, or 40.9% of net sales, up from $94.0 million, or 39.9%.

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Adjusted gross margin improved to 46.9% from 45.9%. Adjusted EBITDA increased to $44.4 million from $35.1 million, with the margin expanding to 16.8% from 14.9%.

SG&A expenses fell to $90.4 million from $95.7 million, or 34.1% of net sales versus 40.7% a year ago. Adjusted SG&A totaled $79.6 million, or 30.1% of net sales, compared to $72.9 million, or 31.0%, in the prior-year period.

The company reported operating cash flow of $38.7 million year-to-date, down $9.1 million from the prior year, primarily due to one-time items and higher incentive compensation ...